4H Box Breakout
Forex Strategy 4H Box Breakout
Forex Strategy 4H Box Breakout (designed primarily for the currency pair GBPJPY and trade is conducted on the range H4) is very, very easy to use and can bring traders earned an average of about 1000 points per month, although it is based only on graphical constructions!
Although forex strategy 4H Box Breakout was developed for the currency pair GBPJPY, but it is possible to adapt and for other currency pairs.
And so to begin to draw a box , joins the maximum and minimum 1-D closed candles on a 4-hour chart after the discovery of a new week (on the schedule - the blue region).
example look at the picture (for a larger image - click on it - will open in new window):
Terms of Business Strategy Forex 4H Box Breakout:
- wait close of the first 4-hour candle after the opening of a new week. We expose
- pending orders at the horizontal level box + 8.10 points
- Or open the bargain on purchase of the breakdown of newly formed weekly box up.
- Or open the deal to sell the breakdown of newly formed weekly box down.
safety stop-loss must be installed on the opposite side of the "box" + 10-20 points.
take profit has several goals for profit and can be either fixed or you can close the deal when the sides respectively TP1, TP2, TP3 and.
TP1 - the size of the resulting box.
PR 2 - 2 x size formed by the box.
TR 3 - 3 x the size of the formed box.
Profit Of course you can fix at TP1, but usually (in most cases) the movement in the market is more than the target garazdo TP1, the more you should always remember that the rewards of a transaction should always be openly accepted privyshat risk (and preferably 2-3 times) - one of the most important factors Profitable forex trading.
So basically recommend to the trading position of the level of TP2, but if you notice that some of the price level is still continuing its upward movement - it is better to wait for the breakdown of the level of TP2 to take more profit on the open transaction. Or, as mentioned above - perhaps closing the deal on parts such as 30% on every level, but do not forget after the closing level of TP1 and 30% of the transactions and rearrange the remaining 70% to breakeven.
Advantages of forex strategy 4H Box Breakout:
It absolutely does not require that the trader was a constant in front of the monitor.
There is absolutely no difficult to understand forex indicators.
Profit potential garazdo greater than the risks taken by each open transaction.
It is very, very easy to understand and to trade.